In: Accounting
Cast Exercise? Equipment, Inc. reported the following financial statements for 2018?:
Cast Exercise Equipment, INC.
Income Statement
Year Ended December 31,2018
Net Sales Revenue $709000
Cost of Goods Sold $344000
Gross Profit $365000
Operating Expenses:
Depreciation Expense $50000
Other Operating Expense $195000
Total Operating Expenses $245000
Net Income $120000
Cast Exercise Equipment, INC.
Comparative Balance Sheet
December 31, 2018 and 2017
Assets 2018 2017
Current assests $20000 $19000
Accounts Receivable 55000 49000
Merchandise Inventory 87000 92000
Long-Term Assets:
Plant Assets 270000 217500
Accumulated Depreciation-Plant Assets (44000) (34500)
Investements 92000 81000
Total Assets 480000 424000
Liabilities
Current Liabilities:
Accounts Payable $73000 $72000
Salaries Payable 5500 6500
Long-Term Liabilites:
Notes Payable 62000 72000
Total Liabilities 140500 150000
Stockholders' Equity
Common Stock, No Par 46000 37000
Retained Earnings 293500 236500
Total Stockholders' Equity 339500 273500
Total Liabilites and Stockholders' Equity $480000 $424000
Cast calculated the following amounts for 2018?:
• Acquisition value of plant? assets$93,000.
• Payment of? dividends $63,000.
• Payment of? long-term notes? payable $10,000.
• Cash receipt from issuance of common? stock $9,000.
Cast Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $40,500.
No cash was received upon disposal.
Prepare the? company's statement of cash flows—indirect method—for the year ended December? 31, 2018.
Assume investments are purchased with cash.? (Use parentheses or a minus sign for numbers to be subtracted. If a box is not used in the? statement, leave the box? empty; do not select a label or enter a? zero.)
Complete the statement one section at a? time, beginning with the cash flows from operating activities.
Cast Exercise Equipment INC
Statement of Cash Flow
Year Ended Decemeber 31,2018
Cash Flows from Operating Activites | ||
Net Cash: | ||
Adjustments to Reconcile Net Income to Net Cash | ||
Provided by (Used for) Operating Activites: | ||
_________ | _______ | |
Net Cash Provided by (Used for) Operating Activities: |